101 google auction system

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Understand how Google auction system is working.

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Google bidding How-toFeb 17, 2012

NETBOOSTERASIA INC.

ORGANIC

RESULTS

PAID SEARCH

RESULTS

GOOGLE SEARCH

The position in Google depend on an auction system

Google Auction system

GOOGLE AUCTION SYSTEM

Max bid

$4.00

$3.00

$2.00

$1.00

Each advertiser gives

to Google the

maximum bid he is

ready to pay

For every

query made

and auction

is done by

Google

An auction is only effective for a click

So an advertiser only pay when a click

happen

GOOGLE AUCTION SYSTEM

Advertiser pay only the

bid of the advertiser

below them

You just pay enough to

beat the competition

Max bid Price paid

$4.00

$3.00

$2.00

$1.00

GOOGLE AUCTION SYSTEM

Advertiser pay only the

bid of the advertiser

below them

You just pay enough to

beat the competition

Max bid Price paid

$4.00

$3.00

$2.00

$1.00

$3.00

$2.00

GOOGLE AUCTION SYSTEM

Why quality matters ?

Quality score is made of 3 components

QUALITY SCORE

CTR

It means Google consider

users clicks like votes

The more clicks you have

the more your score goes

up

Quality score is made of 3 components

QUALITY SCORE

CTR

It means Google consider

users clicks like votes

The more clicks you have

the more your score goes

up

Relevancy

How relevant the

keyword is to the search

query

And relevancy of the Ads

to the keyword

Quality score is made of 3 components

QUALITY SCORE

CTR

It means Google consider

users clicks like votes

The more clicks you have

the more your score goes

up

Relevancy

How relevant the

keyword is to the search

query

And relevancy of the Ads

to the keyword

Landing page

Landing page quality:•Relevant

•Original content

•Easily navigable

•Quick load time

Ad Rank

Max bid

$4.00

$3.00

$2.00

$1.00

AD RANK

Max bid X Quality score

$4.00

$3.00

$2.00

$1.00

AD RANK

= Ad Rank

Max bid X Quality score

$4.00

$3.00

$2.00

$1.00

AD RANK

= Ad Rank

1

8

3

6

Max bid X Quality score

$4.00

$3.00

$2.00

$1.00

AD RANK

= Ad Rank

1

8

3

6

4

8

9

12

Max bid X Quality score

$4.00

$3.00

$2.00

$1.00

AD RANK

= Ad Rank

1

8

3

6

4

8

9

12

Position

X not display

3

2

1

Cost of the click

COST OF CLICK

You will always pay the minimum amount

necessary to maintain your position

COST OF CLICK

Price I will pay

COST OF CLICK

Price I will pay

Quality of my

advertising

COST OF CLICK

Price I will pay

Quality of my

advertising

Price of my

competitor

COST OF CLICK

Price I will pay

Quality of my

advertising

Price of my

competitor

Quality of my

competitor

COST OF CLICK

The more quality I have

the less I will pay

COST OF CLICK

The better is my competitor, the

highest will be the price to pay

Example

Max bid X QS

$4.00

$4.00

$4.00

AD RANK

= Ad Rank

8

6

3

32

24

12

Actual CPC

Max bid X QS

$4.00

$4.00

$4.00

AD RANK

= Ad Rank

8

6

3

32

24

12

Actual CPC

24/8 = $3.00

Max bid X QS

$4.00

$4.00

$4.00

AD RANK

= Ad Rank

8

6

3

32

24

12

Actual CPC

24/8 = $3.00

12/6 = $2.00

Max bid X QS

$4.00

$4.00

$4.00

AD RANK

= Ad Rank

8

6

3

32

24

12

Actual CPC

24/8 = $3.00

12/6 = $2.00

Min price No advertiser below

Max bid X QS

$4.00

$4.00

AD RANK

= Ad Rank

8

6

32

24

Actual CPC

24/8 = $3.00

12/6 = $2.00

Increase of the quality of an Ad

Quality score goes up to 10

Max bid X QS

$4.00

$4.00

AD RANK

= Ad Rank

8

6

32

24

Actual CPC

24/8 = $3.00

12/6 = $2.00

Increase of the quality of an Ad

Quality score goes up to 10

$4.00 10

Max bid X QS

$4.00

$4.00

AD RANK

= Ad Rank

8

6

32

24

Actual CPC

24/8 = $3.00

12/6 = $2.00

Increase of the quality of an Ad

Quality score goes up to 10

$4.00 10 40

Max bid X QS

$4.00

$4.00

AD RANK

= Ad Rank

8

6

32

24

Actual CPC

24/8 = $3.00

12/6 = $2.00

Increase of the quality of an Ad

Quality score goes up to 10

$4.00 10 40 24/10 = $2.40

Google ALWAYS REWARD QUALITY

WORK ON QUALITY FROM

Keyword

TO Ad-Text

TO Landing page

THIS WILL GIVE YOU THE Best COST FOR

YOUR TARGETED POSITION

Based on a presentation of Google Chief Economist halVarian

THANK YOU

LAURENT GOIRANDCEO, NETBOOSTER ASIA

LGOIRAND@NETBOOSTERASIA.COM

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